We argue that the measures of backward linkages used in recent papers on spillovers from multinational companies are potentially problematic, as they depend on a number of restrictive assumptions, namely that (i) multinationals use domestically produced inputs in the same proportion as imported...

This paper simultaneously explores the determinants of the developing countries' production frontier and these countries' 'efficiency' in using the available resources and technology. In doing so it allows for the transfer of (industrial country) technology in determining the frontier and for...